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? variable life insurance ? variable universal life insurance Universal Life insurance ? Is a form of permanent life insurance that is characterized by its flexible premiums, its flexible face amount and death benefit amounts, and its unbundling of the pricing factors. Unbundled Pricing Factors ? Mortality Charges the insurer periodically deducts a mortality charge from the universal life policy’ s cash value to cover the mortality risk the insurer has assumed. Unbundled Pricing Factors ? Interest the policy guarantees that the insurer will pay at least a stated minimum interest rate on the policy’ s cash value each year. Expenses ? The following expenses charges may be imposed: a flat charge the first policy year to cover sales and policy issue costs a percentage of each annual premium to cover expense a monthly administration fee specific service for coverage changes, cash withdrawals, and policy surrenders. Flexibility Features ? Face amount and amount of death benefit ? flexible premiums How a Universal Life Policy Operates Effects of Regulation on Universal Life Products ? Insurance product or investment product ? tax treatment ? policy’ s cash value and the face amount ? surrender charges Periodic reports ? Sample annual report or a universal life insurance policy Indeterminate Premium Life Insurance ? Is a type of